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NOVEMBER / DECEMBER 2008

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in the face of an economic downturn and spiraling financial markets, marketers examine their marketing budgets for the upcoming year
This e-book highlights the marketing budget trends for 2009 as shared by leading marketing blogs and web sites. No matter what you may do with your marketing budget for the new year, it's always a good idea to take a macro-view of the marketing climate at large to learn what other industries and marketing executives plan for their 2009 marketing expenditures.

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.are to succeed!' Suresh \Anal. Principal Analyst Forrester Research M. Some managers see marketing as an expense.com emadl rnarketing & web des ign pubHc relauions& outreach brand1ing & collateral social media sWltegy training speaking writing preseotatlons ':. why were you wasting that money in good times?" o f or Marketing Strategist.GET OVERVIIEW the last couple of months.. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. however.arewondering how thi's year-s budgetsWiU stretch. it should be noted that there is a difference in perception when it comes to marketing budgets. I've in one way or another touched on a reality facing many marketing managers and executives: marketing budgets for 2009 will be impacted in some way. How these budgets are impacted is the primary focus of this e-book dedicated to sharing the collective insight and trends from various leading marketing blogs.marke'ters alike . Before diving into this subject. in my Letters from the Editor column. So states John Williams. mari<:eting organizations must change if they . However~ one thing is clear in today's. a Senior Finance Executive with international and public company experience and a partner at B2B CFO in Norfolk. shape or form.mayra . online publications and thought leaders in the marketing space. global economic slowdOwn.com Page 1019 . If that is the case.mayraruiz. others passionately argue that any marketing "expense" is really an investment in positioning and promoting your business.ARKETING BUD'. Virginia: "Cutting back advertising only means that you believe the funds you expend there are not effective.

. certainly not much more than that.S. the effort to somehow attempt to foresee what 2009 has in store is insightful for marketers as it helps steer our marketing direction. then consumers may live a little once again.mayraruiz. no matter what the industry. at minimum. unveils $40 billion in aid to AIG Starbucks profit plummets by 97 percent NYT: Emanuel urges aid for auto industry Fannie Mae posts $29 billion quarterly loss I could go on. And whether you agree with it or not. Ahhh if only these were good times.Economic gloom is so pervasive these days . but somehow. Q2 and Q3 will be better than they look. he states. web sites and industry publications recently and with good reason: it's a highly relevant subject many marketers have to face or work through as their employers navigate today's choppy economic waters. which usually needs to be several months out.. marketing budgets are one of several targets to be affected in some way. Turn on any television or radio and visit just about any news Web site and you won't be able to escape today's grim economic realities. Q4 of 2009 is the real question in my eyes. The direction. but Q2 and Q3 will be stronger-with 9% to 10% growth. How about 2009 economic predictions? Cory Treffiletti of MediaPost recently predicted the coming year will bring about some stability. not more than Cory further believes that consumers will be "tight-fisted for the holidays and will build stricter budgets going into next year. shape or form given the economic outlook for 2009. will allow many businesses the time to examine where they are. today's times lean more heavily on the bad side as of late. Marketing Strategist. Cory's specific 2009 outlook is as follows: Q1 revenue is going to be bad. implications and consequences of such an impact have been the topic of hot discussion on many marketing blogs." He adds. Forget 2009 resolutions. "Come spring and summer. one quick glance at MSNBC." Whether Cory's predictions come true or not. as that is just too far away to predict accurately. I think you get the picture. not growth-and the stability. As we are all too clearly aware.com's main "Stocks & Economy" section's headlines underscores the gravity of our nation's sour economic climate: • • • • • • Oil slips below $57 on global pessimism Economy strikes America's richest university U. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. create efficiencies and increase productivity.com Page 2 019 . And so do your bosses and senior managers. assuming that oil prices have stayed stable and housing prices have not dropped more. probably coming in line with the 9% to 10% growth that many online analysts are predicting. At the time of this writing.

are not as optimistic about 2009.mayraruiz. as Roy Young points out. however. Doing so will help us to better understand the various different perspectives. Online marketing is turning into a venue where marketers can stretch their dollar while accurately targeting leads and customers. An October 2008 survey by Marketing Profs of more than 600 marketing professionals and managers.com Page 3 019 . Whether the market continues to fluctuate or falls into a recession. • • Objective data and analysis of this type can be helpful to any company or business trying to better align its promotional efforts with what other businesses are doing in response to today's down markets. Marketing Strategist.Other studies. 75% of marketers surveyed expect the impact of the crisis will extend through 2009 and into 2010. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. 60% of all marketers surveyed stressed that they would be increasing their online budgets while 85% would be reducing their use of traditional marketing vehicles. finds the following: • The majority (52%) of marketers are already making changes to plans and budgets as a result of the economic crisis with 65% of marketers expecting negative effects on marketing overall. Now let's examine some of the recent marketing budget trends on the horizon which have surfaced recently in response to the economic chaos challenging the very core of business all around the world. influences and drivers challenging marketers even as you read this sentence.

. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook for 2009 and its Impact on Marketing Budgets I www. or a re there institutons outthere who are maintaining. be.com emadl rnarketing & web des ign pubHc relauions& outreach brand1ing & collateral social media sWltegy training speaking writing preseotatlons "What impact. shows. Like Terry. has the . this is a highly relevant question yet only two people responded to Reggie's inquiry. 811 ready. For marketers everywhere. Of the two individuals who responded.current emilironment had on your 2009 budget(s) .and .com Page 4 of 9 . their maJrketing efforts? AJso. Seems like everyone is asking similar marketing budget questions. owner at Sarah Clachar Health Copywriting. branding efforts ." Sarah Clachar. Manager of Corporate Business Development at AG Salesworks. the responses were fairly consistent with most of the 2009 marketing budget trend information available on the Internet: • Terry Dolan..900500.mayra .or are taking a Ivvait-end-see'approach before determining what their marketing efforts \Nill consist of. Oie." o t he • Marketing Strategist.mayraruiz. shares that his company's current and potential clients are under a microscope to demonstrate ROI in Ql '09 like never before.overall malketi'ngl pJan7' tt seems that so many ofthe fol ks I speak vvith of late have ether slashed their budgets. or perhaps even growing.) versus highly trackable and highly targeted lead generation programs (cold calling campaigns. Slip.appea r to. Sarah sees more emphasis on developing web-based marketing due to cost-effectiveness. email). "I think you'll see a lot less traditional spending (mailers. "It's a good place to pre-test direct mail.rif Delfelopment DIVIA Corporation MARKETING BUD'IGET TRIENDS question above was recently asked on the popular professional social network LinkedIn. agrees with Terry and believes there will be more focus on direct response and fine tuning according to test results. Are the ded:si'ons above as prevalent as they .Iwonder what role geagra phy mig ht play? Rf!:!}ym .

are aware of the marketing budget shifts and trends taking place in today' s business climates due to the economic recession. what an organization does with its marketing budget for any year. "Invest in your brands now." He added. People have a tendency to pull back. plan on shaving back their marketing expenditures as a traditional response to a downturn in the economy. In economic times like these. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. Tripodi. in good or bad economic times. Ultimately.Terry and Sarah. you don't hunker down and go in the bunker. (including Procter and Gamble. reported to have the strongest brand recognition in the world. who survived the crash of the 1930s) are suggesting marketers at all levels do just the opposite and are even going as far as encouraging companies to stay on track. is highly dependent on its own programs. Joseph V. Marketing Strategist. and General Mills. there isn't one trend that is "right" or represents the "best" marketing direction. goals and objectives. As we try to explore some of these trends in more detail. some of the biggest names in branding. and that's the worst thing. General Mills is fending off the economic downturn with a new "Home is calling" campaign." several head marketers for big brand companies were sharing their "market onward. and we cannot panic." Wieland also highlights the marketing tenacity of companies such as Coca-Cola. please be aware that the marketing budget trends being shared here are (a) hardly all inclusive of every industry and (b) not unique to one specific industry or line of business. but use dollars carefully. Hewlett-Packards senior vice president and chief marketing officer Michael Mendenhall had one of such quotes: "It's incredibly important to be risk-takers in the economic climate we're in. "Don't cut that marketing budget yet. Stuart Elliott at the New York Times shared some of the more memorable quotes by head marketers for companies like Hewlett-Packard. not all industries or businesses agree with the scaling back response. As in fashion. In fact. Don't let the urgent overwhelm the important. Not everyone plans to cut marketing budgets While some organizations. customers and market segment. it's good to know what marketing budget trends are in play to help guide your 2009 marketing decision-making in the right direction. as the MarketingProfs findings indicate.com Page 5 019 . who refuse to retreat and cut back. market stronger" positions at the recent annual Association of National Advertisers conference." Brand recognition is one thing. chief marketing and commercial officer for Coca-Cola was quoted as saying: "Don't go to the ledge. 2008 post entitled. The easiest thing is to shut down.mayraruiz. but getting consumers to buy is another. especially in these dry times. Still. Coca-Cola. As Diane Wieland of Duo Consulting's blog shared in an October 28. It's very easy now to panic. like many others in the marketing space.

2008 article published in the Chicago Daily Law Bulletin.com Page 6 019 .com) will replace expensive. Curtis Linder from Linder Legal Staffing. The more potential clients you can sit in front of to tell your story to. 2008 survey by MarketingSherpa finds that some of the specific areas where marketing budget cuts will be most felt are in the following: • • • • Less trade show attendance which result in less travel and less sponsorships Renegotiating third-party contracts.8%) .2%) Keyword Search Campaigns (75. www. extended off-site training Reduced marketing staff for reduced overhead Marketing Strategist.6%) Online Advertising (77." said Mark Addicks.5%) Social Media (61. reevaluating vendor contracts due to price pressures Virtual training (e. it does appear a large preponderance of marketing departments will have to market with less."Right now.. for example. So a new campaign for the company's Pillsbury brand will carry the theme "Home is calling.mayraruiz. Hildebrandt advises (among other things): continue law firm marketing. the more opportunities to sell them on your company. people need to go back to the comfort of home.2%) Many other industries and service providers from diverse professional tracks also believe marketing cutbacks are counterproductive in down markets. Virginia says one expense that will change for sure will be his firm's marketing budget. more than 64% of respondents say the current economy probably won't affect their overall marketing budgets. given where America is." Most marketing departments will have to market with less Despite the marketing budget cut defiance some industries and organizations courageously display as their response to the recessionary economy.1ynda." Other industry sectors to avoid marketing cutbacks In a just-released survey from eMetrics Marketing Optimization Summit. A December 2. left a comment on the Duo Consulting blog citing an October 28. "We will be forced to spend more of our resources attracting new clients." And Glen Miracle of NVS Kitchen & Bath in Manassas. and Video Advertising (38.. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. but most report plans to Increase or maintain their budgets for: • • • • • Email (83. The article refers to a special advisory published by law consulting firm Hildebrandt in which it reports that "among actions law firm management should take immediately. senior vice president and chief marketing officer at General Mills.g.

and put money back on by searching for deals. they still need to reach online audiences and woo their shrinking wallets with messages that reach their hearts and minds-hence. 2008 marketing study cited above indicates that traditional marketing will continue "to hurt" with newspaper advertising declining in the new year more than any other medium. Some of e-Marketer's Senior Analyst David Hallerman's findings include: • Video ad spending will run counter to overall economic developments. the first on the list is the increase of online advertising spending for the coming year. Two basic assumptions support this eMarketer projection: o Search is highly measurable. whether online or offline. o Second. reduce or transform your marketing budgets for 2009. so it will maintain its place in many budgets and increase in some others. to $12.com Page 7019 . 2008 highlights many other notable marketing expenditure trends and predictions for 2009. Marketing Economic Strategist. most marketing budgets for 2009 will either be cut back or have their dollars shifted more than likely towards digital marketing. This drop in spending reflects not only expectations of a continued poor economy but a seismic shift in the way TV ads are bought and sold. eMarketer also estimates that US TV ad spending will decline 4. However your shift. Two key factors support this trend: o First. consumers-who monetize search ads by deciding whether or not to clickwill take money off the table by shopping less. Not surprisingly. more video. o Also. The December 16. but it is recession-resistant. its inherent strength will mean greater spending gains than for any other major form of advertising.9% in 2009. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Outlook lor 2009 and its Impact on Marketing Budgets I www. that is the question Ultimately.9 billion in 2009.2% to $66.mayraruiz.3 billion. • To cut or not to cut. as advertisers look for secure and effective methods to combat fear in an economic meltdown. the sharp escalation of professional video content on the Web-mainly from TV networks-is creating a viable base for brand marketers. rising by 45% in 2009 to reach $850 million. Search marketing spending will grow by 14. one fact is beyond clear: marketers will need to squeeze more ROI from marketing expenditures than ever before. Search marketing is not recession-proof. even though most advertisers are increasingly cautious with their budgets.More trend details A recent e-Marketer study dated December 16. Although search advertising will grow less in 2009 than in any previous year.

marketing budget scarcity can often then result in unexpected resourcefulness.fI marketing & web design pub'lic relations & outreach branding & collateral social media strategy training speaking writing presentations THE SIILVER LIININ'G f there can be any silver lining to marketing budget reductions. our ability to be creative becomes more of a necessity and compels us to see what more can be achieved with less. When marketing budgets are plush. Cut the frills and shave off the excesses. A few questions to consider as you rework your 2009 marketing dollars include: • • • • • • • • What marketing programs or campaigns have not resulted in solid. it's all about sensible marketing.com columnist believes that reduced marketing budgets may be a blessing in disguise.com ema." These times of marketing budget scrutiny. publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. it would be that generally we tend to be more creative when resources are limited. so it's still within your reach. When marketing budgets are cut. Marketing in 2009 is all about being lean. we marketers are creatively creative. Marketing Strategist. right or wrong. streamlining and integrating wherever possible. Ironically. meaning our creativity is more inspired than forced.com Page 8 019 .mayraruiz. however. D I • Adam Cahill. metrics or measurements tool(s) can provide better insight into our marketing operations? What are our marketing partners/agencies doing for us that we can't do in-house? What marketing functions or tasks are we doing in-house that would be far more costeffective to outsource? What communications can make the successful shift towards (more) digital? In the end. SVP and General Manager of Carat Boston and ClickZ.mayra . are perfect for "spring cleaning" and making the time to truly reevaluate every marketing dollar being invested. "The marketing with the biggest impact can't actually be bought anyhow. no matter how large or small that expenditure. measurable ROI? What marketing programs or campaigns can be further combined or integrated? What soft-ROI marketing activities get to stay and which ones do not? Where can sales and marketing collaborate even further? What new analytics.

mayra email marketing & web design pubHc relattions& outreach brand1ing & collateral social media str...... managing brands and generating publicity for clients in diverse industries..b. With more than 14 years of experience in developing marketing programs.~j.. non-profit or small business needs assistance with developing out-of-the-box publicity programs and marketing campaigns.....__.""' . publicity assistant & social media enthusiast Mayra Ruiz-McPherson Economic Outlook lor 2009 and its Impact on Marketing Budgets I www. outside-looking-in perspective which can often be the refreshing kick-start your publicity needs! Contact me today at mayra@mayraruiz.... N.. :t'!"""~-......ltegy training speaking writing· preseotatlons If your organization.-O ..... e-books or special reports (like this one) become available? ..f. ono!_~.. ...~ l· . Did you know? ... I can help....... I can provide objective.:i!. _rlt.. -... ""'" MAYRA RUIl-MCPflERSON j....com Marketing Strategist... the first book is scheduled to debut in 2009! Want to be notified when any of my books...mayraruiz..mayraruiz...~""'''''''''''''''''' I am presently authoring several books covering a variety of marketing and publicity topics.. Sign up to receive mv e-newsletter to stay ahead on all my publishing updates.._. _J' ~ y_"_" _.. Mayra Ruiz-McPherson the marketing misfit www.o!'~...... Please feel free to share it with others who may benefit from this information. .~""""'"~-~~ l!I. Thank you for visiting my site and downloading this resource.com and let me know how I can be of service...com Page 9 019 .#..

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